What you need to know before markets open

BlackBerry 10: what you need to know before markets open

North American markets looked set to open lower on Thursday, after the Federal Reserve said in its latest statement that economic growth had stalled and as weak German retail sales data hurt investor sentiment.

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The Federal Reserve on Wednesday left in place its monthly $85 billion bond-buying stimulus plan, arguing the support was needed to lower unemployment even as it indicated a recent stall in U.S. economic growth was likely temporary.

Potash Corp of Saskatchewan reported a bigger-than-expected 38% drop in quarterly profit on Thursday as key potash buyers China and India stayed out of the market, but the company forecast a modest rebound in earnings for 2013.

Research In Motion Ltd on Wednesday unveiled the long-delayed line of smartphones it hopes will put it on the comeback trail, but it disappointed investors by saying U.S. sales of its all-new BlackBerry 10 devices will not start until March.

Facebook Inc doubled its mobile advertising revenue in the fourth quarter, a sign that the social network is seeing early success in expanding onto handheld devices as more of its users migrate to smartphones and tablets.

German retail sales tumbled by their largest amount in over three years in December, preliminary data showed, denting hopes that private consumption can compensate for weaker exports and lift Europe’s largest economy this year.

Spain’s Santander has sharply raised provisions against bad loans after defaults rose in its home market and key earnings-driver Brazil, while writedowns on rotten Spanish real estate also contributed to a 59 drop in yearly net profit.

MARKET SNAPSHOT

Canada stock futures traded down 0.2%

U.S. stock futures were mixed around -0.01% and 0.04%

European shares, were down

COMMODITY PRICE MOVES

Thomson Reuters-Jefferies CRB Index : 305.0439; fell 0.06%

Gold futures : $1,674.8; fell 0.3%

US crude : $97.76; fell 0.18%

Brent crude : $114.91; rose 0.01%

LME 3-month copper : $8,223.5; fell 0.03%

CANADIAN STOCKS TO WATCH

Agrium Inc : The fertilizer company expects North American potash producers to strike a deal with Indian importers in February or March, ending a long standoff, CEO Mike Wilson said on Wednesday.

JDS Uniphase Corp : The company reported a quarterly profit on higher demand for its products used in broadband networks in the Americas.

Turquoise Hill Resources : Rio Tinto Plc said its Oyu Tolgoi project in Mongolia is on track to reach commercial production in the first half of 2013, countering a media report saying the company was considering a temporary halt to construction work because of political issues.

ANALYST RECOMMENDATIONS

Following is a summary of research actions on Canadian companies reported by Reuters.

AGF Management Ltd : National Bank Financial raises target price to $11 from $9.50 on an increased valuation after the company reported fourth-quarter results.

Altagas Ltd : CIBC raises price target to $37.50 from $35 after news of plans to form a 50/50 joint venture with Idemitsu Kosan Co Ltd to pursue opportunities involving the export of LPG and LNG from Canada to Asia.

CGI Group : CIBC raises price target to $31 from $30 citing the company’s solid first-quarter results and growth in its U.S. operations.

KEY Real Estate Investment Trust : CIBC raises to sector performer from sector underperformer and raises price target to $7 from $5.75 after Huntington Capital Corp announced its intention to make an all-cash offer to purchase up to 6.6 million units of the company.

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